Gallager Company, Which Has Only One Product, Has Provided the Following

question 35

Multiple Choice

Gallager Company, which has only one product, has provided the following data concerning its most recent month of operations:
-What is the total period cost for the month under the absorption costing approach?

• A) $59,400
• B) $112,200
• C) $343,400
• D) $231,200

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Definitions:

Operating Leverage Factor

A ratio that measures the proportion of fixed costs to total costs, indicating how a change in sales volume impacts profitability.

Sales Volume

The quantity of products or services sold by a business during a specific period, often used as an indicator of business performance.

Cost Structure

The composition of a company's costs, including the proportion of fixed versus variable costs incurred in its operations.

Break-Even Occupancy Rate

The occupancy level at which a hotel or rental property's operating income equals its operating expenses.